Achiko AG (Achiko AG) ROC % : -128.75% (As of Jun. 2022)

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What is Achiko AG ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Achiko AG's annualized return on capital (ROC %) for the quarter that ended in Jun. 2022 was -128.75%.

As of today (2024-06-09), Achiko AG's WACC % is 0.00%. Achiko AG's ROC % is 0.00% (calculated using TTM income statement data). Achiko AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Achiko AG ROC % Historical Data

The historical data trend for Achiko AG's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Achiko AG ROC % Chart

Achiko AG Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

ROC %

-222.39

-407.46

-243.80

Achiko AG Semi-Annual Data
	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22
ROC %	Get a 7-Day Free Trial			-320.77	-379.70	-267.46	-188.64	-128.75

Achiko AG ROC % Calculation

Achiko AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-6.762 * ( 1 - -2.9% )	/	( (3.512	+	2.196)	/ 2 )
=	-6.958098	/	2.854
=	-243.80 %

where

	Invested Capital		(A: Dec. 2020 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1.772	-	2.3	-	( 0.599	-	max(0, 5.496	-	1.456	+	0.599	))
=	3.512

	Invested Capital		(A: Dec. 2021 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1.914	-	2.403	-	( 0.627	-	max(0, 4.123	-	1.438	+	0.627	))
=	2.196

Achiko AG's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2022 is calculated as:

	ROC % (Q: Jun. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2021 )	+	Invested Capital (Q: Jun. 2022 ))	/ count )
=	-3.84 * ( 1 - 0% )	/	( (2.196	+	3.769)	/ 2 )
=	-3.84	/	2.9825
=	-128.75 %

where

	Invested Capital		(Q: Dec. 2021 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1.914	-	2.403	-	( 0.627	-	max(0, 4.123	-	1.438	+	0.627	))
=	2.196

	Invested Capital		(Q: Jun. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2.348	-	3.089	-	( 0.054	-	max(0, 5.384	-	0.874	+	0.054	))
=	3.769

Note: The Operating Income data used here is two times the semi-annual (Jun. 2022) data.

Achiko AG (OTCPK:ACHKF) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Achiko AG's WACC % is 0.00%. Achiko AG's ROC % is 0.00% (calculated using TTM income statement data). Achiko AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Achiko AG ROC % Related Terms

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Achiko AG (Achiko AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Achiko AG (OTCPK:ACHKF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Tessinerplatz 7, Zurich, CHE, CH-8002

Website

https://www.achiko.com

Achiko AG is developing disruptive diagnostic solutions that put people first. The company product is a rapid, reliable Covid-19 test with a companion app offering a user-friendly digital health passport. Achiko creates and develops aptamer-based diagnostics through its biotechnology division, AptameX, and companion health apps via its digital mobile health technology division, Teman Sehat. The AptameX DNA aptamer tests can be rapidly chemically synthesized, are cost-effective, and have wide potential across multiple disease diagnostics. Leveraging AptameX and Teman Sehat, Achiko aims to deliver fast, accurate, and affordable diagnostic testing for a range of pathogenic diseases and therapeutic indications in the rapidly evolving healthcare diagnostics field.